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Basic Question 1 of 7

The price of a futures contract will equal the price of an otherwise equivalent forward contract if ______

A. interest rates are uncorrelated with future prices.
B. interest rates are positively correlated with future prices.
C. interest rates are negatively correlated with future prices.

User Contributed Comments 1

User Comment
kingirm If..means it changes from market to market ie country to country ?
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

compare the value and price of forward and futures contracts

explain why forward and futures prices differ

CFA® 2024 Level I Curriculum, Volume 5, Module 6.